Please look at the summary of the Government’s Decisions set out here.

The Government also today published its further Comprehensive Review Feed-in Tariff proposals (Part 2). These are in two parts:

Part 2A which sets out Government’s proposals for Solar PV Cost Control

Part 2B which sets out Government’s proposals for the Other Technologies

Energy and Climate Change Secretary Chris Huhne said:

"The Court of Appeal has upheld the High Court ruling on FITs albeit on different grounds. We disagree and are seeking permission to appeal to the Supreme Court."

Read the statement in full here and access a written ministerial statement by Chris Huhne here.

There is still uncertainty about FIT rates paid on installations fitted and registered between 12 December and 2 March as it is not yet clear whether the Government will be allowed to appeal. However, for <4kw systems the minimum tariff that consumers installing in this period will receive is 21p. If the Government's appeal is unsuccessful, or should they decide to withdraw it, consumers will receive 43.3p.

You can access a useful DECC briefing document explaining the outcome of the judicial review appeal on our website.

The new generation tariffs set out in the draft licence modifications being laid today are set out in the Ministerial Statement and would apply for all installations with an eligibility date on or after 3 March 2012.

For more information please follow the link below to the ministerial statment on the DECC website.

http://www.decc.gov.uk/en/content/cms/news/WMSCH_FITs/

The tariff rate for PV installations less than or equal to 4kW will not fall below 21p for installations with an eligibility date between 12th December 2011 and 31st March 2012.
 

"Customers and potential customers need to be aware of the continuing uncertainty over the rates that will apply after 1 April to installations completed between 12 December and 1 April (NB they will receive 43p in any case until 1 April):

• If the Government wins on appeal, we are where we were before legal action began, ie the Government will consider all responses to its consultation proposals, including the proposal that a domestic system (up to 4 kWh) can expect to earn 21p from 1st April 2012.
• If the Government does not win on appeal, then the 43p tariff remains in place for all registered installations until the Parliamentary process has concluded (expected to be 1st April 2012, possibly earlier).

It is not yet clear if the Government will be granted leave to appeal, and if so what date the appeal would be heard."

The Government are planning to submitt their case for appeal to the Court of Appeal by 4 pm today.
 

The court agreed that proposals to cut feed-in tariff payments for any solar scheme completed after December 12 - 11 days before the official consultation closed - were unlawful.

The implications of this decision mean that the pre 12th December tariffs cannot be changed until after the full parliamentary process – i.e. an 8 week consultation, followed by a review of the responses and then a 40 day period before the legislation takes effect. This is unless the Government wins an appeal.

Government was not given leave to appeal, but if it wants to make a case it must put that forward by 4th January 2012.

More information please see the Department of Energy and Climate Change and Energy Saving Trust websites.

However, there were also concerns identified by some consumers. The most widely experienced problems were difficulties or delays in the registration for the tariff and a lack of information from installers on getting the best out of the system. Even more worrying issues with misleading or pressurised sales tactics were also identified, although less widely experienced.

For more information on the research see article on the Consumer Focus Website.
 

There is also guidance for installers which is available here .

The document is available to download from here.

Implementation Date – Thursday 1st December 2011

All MCS ceritifed installers are to implement the revised version from the implementation date and will be subject to it for their next surveillance visit. All new MCS installers will be certified to the revised version.

A key revision of the standard for REAL members is Clause 8 of Appendix A which stipulates:

A contract for the sale and installation of a system shall be entered into only between an MCS certified Company and a Customer. An MCS certified Company may carry out work under subcontract to another MCS certified Company in which case clause 10 must be satisfied.

More information is available on the MCS website here.

Cavendish Elithorn, Senior Director of the OFT's Goods and Consumer Group said: 'The renewable energy sector is a relatively new market and is growing rapidly as people look for more cost effective and environmentally friendly energy sources.'

'It is important that people making such an important purchase can do so confidently and the approval of the REAL code is part of the OFT's commitment to help people investing in renewable energy technologies. People who buy goods or services from a business with an OFT approved code can expect a higher standard of protection than that required by law.'

Virginia Graham, Chief Executive of REAL, said: 'We work hard to ensure all our members comply with our Code. Gaining OFT Code approval will help us enormously to drive the highest professional standards in our sector. We act on the complaints and tip-offs we receive to inform the monitoring and enforcement we do. This year we have audited, compliance checked and mystery shopped 1,000 companies. If companies do not meet our standards, we will investigate promptly and will impose sanctions.'

REAL members that renew their membership for 2012 will be permitted to display the OFT logo, details will be sent with their renewal documents.

For mor information on the Code, CCAS and the OFT follow this link here.

There is also information available on the Energy Saving Trust website here.

The profile we see in the REAL office again and again is this: having established themselves with aggressive selling of double-glazing in the 80s, unscrupulous companies shifted to conservatories, driveways, alarms and solar thermal in the 90s, and are now trying hard to make their mark in solar PV. With capital costs falling sharply, companies can make a very good margin between now and next April, when the feed-in tariff level is revised. Sadly, their shenanigans run the risk of ruining the reputation of our industry, so in the REAL office a great deal of time is spent monitoring these companies. We act on consumer complaints as well as tip-offs from REAL installers, members of the publ ic, Trading Standards officers and others to keep these rogues out of REAL.

Typical cowboy procedures
Typically, an unscrupulous company will have self-employed salesmen who work to commission. (Almost always they are men, but although the term ‘he’ is used throughout for convenience, women are included as well.) These companies can be based anywhere around the country and might spend a few week s targeting a particular area with flyers and advertisements that shout over-ambitious claims, before the reps work the streets. Alternatively, they use lead-generator websites to create leads, which are picked up by their own call centres and turned into sales appointments – or ‘free solar surveys’ as they are more likely to be known.

Once that appointment has been made, the rep’s activities usually follow a certain pattern, too. Here are some of the classic scenarios we have come to know too well.

Overstaying the welcome
Any sales rep who visits the site and stays for a long period of time is suspect (more than two hours requires a written explanation to their company giving the reasons why they needed to stay so long). We know that many sales reps can stay just short of two hours without good reason, thereby just keeping within the rules – though one complainant told us of a rep who stayed six hours in their home.

Dodgy discounts
The ‘cowboy’ sales rep will typically offer a high initial price and appear to negotiate heavy discounts, or offer a discount only if a contract is signed there and then. One rep we heard about dramatically reduced the price during his visit, from £20,595 to £14,416 for a 2.4kWp system. A classic example of this is where the rep nips out to his car, appears to ‘phone the boss’ and comes back in with a more generous-sounding offer. One inventive version we have heard of is the case of the salesman who insisted that he was from the ‘marketing’ department rather than ‘sales’. The prospective client was told that “if a proper salesperson had visited, she would be paying more for the system”.

Monitoring-scheme discounts
A very large discount for ‘monitoring’ may be offered. One sales rep, at the end of a four-hour pitch, offered a discounted price for taking part in a monitoring scheme and agreeing to have photos taken for marketing material. This discount was “only avai lable for one person in the postcode, so they had better snap it up”. The salesman tried to put the client off from talking to their family about the offer. The client was then left wondering how they would ever get the sales rep out of their house. The rep might avoid the issue of price until the very end of the visit, once he feels he has got the customer’s trust – or he may insist on returning a bit later “to give them time to think about it”.

Three-legged pitch
The rep will probably insist that both husband and wife are present at a sales visit, known in the jargon as a ‘three-legged’ pitch.
 

‘Limited’ availability
A product may be claimed to have a limited availability, and the rep may pressure a sale under this pretence.

Withholding information
A high deposit to secure a discounted sale may be demanded. On the other hand, the rep might persuade a consumer to take out a finance deal, or agree a very low deposit with a credit card, to secure a sale, and keep quiet about the cancellation form and seven-day cooling-off period.

Poor product knowledge
The rep might have little knowledge of the industry – recruitment ads for these salesmen often do not require any technical expertise. We have heard of salesmen showing materials for solar thermal when they were actually selling solar PV.

Targeting the elderly
Some reps have no qualms about targeting older people – sales being made to people with early onset dementia have been reported. One old lady, by the end of the sale session, had signed a cheque for a deposit of £3845 on a quoted total contract price of £14,800 for a 1.8kWp system.

Risks for installers
Increasingly we are seeing some of these companies operating outside the Microgeneration Certification Scheme (MCS) and the REAL Assurance Scheme, and relying on small local installers who are technically skilled and have the MCS certification that every installation requires to qualify for the feed-in tariff. These installers are expected to not just install a system, but also sign it off and provide the commissioning certificate. We tell our members to be very careful indeed when considering agreeing to such an arrangement with an unregulated sales company. If anything goes wrong, it is the installer, our member, and not the salesman, who takes the rap for misleading claims. We have heard horror stories of genuine installers turning up to jobs sold by cowboy sales companies, to find proposed instal lat ions on nor th-facing roofs, shaded by chimneys or trees. We are also aware of people buying heat pumps and paying large sums up front, only to be told they cannot have a grid connection.Any MCS-certified installation firm taking on work for a third-party company should be absolutely sure that they are comfortable with the sales techniques being employed. Any general marketing claims, as well as specific claims and forecasts offered to customers, must be compliant with the REAL Consumer Code. The MCS standards will shortly be revised to make it clear that only MCS-certified companies can sign contracts with consumers and take deposits.

Encouraging compliance with the Code
At REAL we are now dealing with 100 serious complaints a year in the solar PV sector, overwhelmingly about pressure selling, non-return of deposits and poor contracts. However, this needs to be seen in the context of 60,000 installations being carried out in the past year. The nature of the complaints is a daily reminder of why the REAL Consumer Code matters, not just to consumers but also to all of the serious and committed companies who work in renewables and want high industry standards. It is why we work hard to publicise the key features of the Code to the public, and it is also why we insist that our members be familiar with it. Our guidance for consumers, including our Top Tips, is available online at: www.realassurance. org.uk/pdf/top-tips-for-consumers.pdf.

REAL does a number of things to ensure that members are compliant with the Code. We audit a large sample of members, which involves visiting company premises for half a day. We also do online compliance checks and spot-check one in ten of these. Spot-checked companies have to submit working examples of quotations, contracts, screenshots of their client accounts, and evidence of insurance and installer warranties. We do mystery shopping too. We offer plenty of guidance and other useful information, along with model documents, for members and companies looking to join REAL. You can find them in our members section.

If you come across a firm fitting the above descriptions of unscrupulous practice, please let us know and include as much evidence as you are able. It is hard work rounding up cowboys, but the REAL team is determined to chase them out of town.

Opening its doors from the 26-28 October, Solar Power UK 2011 will give installers the unique chance to assess all the opportunities of the UK solar sector under one roof.

Solar Power UK 2011’s extensive three-day conference programme will provide professional advice from leading technical training providers, PV and solar thermal companies and suppliers to help attendees better understand the benefits of the UK’s growing solar sector. Virginia Graham from REAL will discuss -The Road to Integrity – Avoiding the ‘Cowboy’ Cliché. Ray Noble from REA/STA will look at the likely new FiT and how installer can cope with drastic cuts.

Over 140 leading manufacturers and wholesalers of PV modules, inverters and balance of systems will exhibit at this full-to-capacity venue, offering the UK installer community the opportunity to assess the best technologies for their upcoming projects.

PV school 201 on Wednesday the 26th of October has been specially designed for newly accredited MCS installers. It will be exploring which technology choices are best, how to monitor, maintain and safely operate systems and further assist REAL members in growing a viable installation business through better system design practices.

Exhibition attendees can choose from a range of solar PV and solar thermal workshops! At just £15, workshop tickets also come with full three day access to the exhibition.

Installers can choose from the following FREE workshops included in an exhibition ticket.

Solar PV

• Joint forces for solar- UK PV briefing and networking forum
• Wagner Solar workshop- How to mount PV correctly
• First Solar PV workshop: How to mount PV correctly

Solar Thermal

• Wagner Solar Thermal workshop: An introduction to Solar Thermal
• STA seminar: Solar Thermal – Policy, Performance, Skills (small upgrade fee)

You can book for the event online at www.solarpowerukevents.org or contact the organisers at info@solarpowerukevents.org or on Ticket line: 0207 871 0122

The REAL Assurance Scheme Consumer Code covers:

Pre-sales activity

• advertising and promotion
• behaviour of sales staff
• performance information and
• predictions
• proposals, estimates and quotes
• permission and approval

Contracts

• terms of business
• cancellation rights
• deposits and prepayments
• timetable and any preparation needed

Completing the order

• responsibility for the work
• design, delivery and installation
• testing and commissioning

After-sales activities

• guarantees
• fuel supplies
• maintenance & service agreements
• service and repair.

The REAL Assurance Scheme monitors compliance with the Consumer Code robustly. Where there is evidence of serious non-compliance, members are referred to the Non-compliance Panel. Monitoring includes:

• in-depth audits of a random sample of one third of our members, with follow-up where there is evidence of non-compliance;
• mystery shopping on a risk-based sample of members;
• investigation of complaints;
• analysis of consumer feedback sent direct to the REAL Assurance Scheme.

During 2010 the REAL Assurance Scheme continued to monitor members’ compliance with its Consumer Code robustly. The Panel met 7 times during 2010 and held three Hearings. During the course of non-compliance proceedings, three companies resigned from the Scheme: Affordable Solar Energy, Clear Sky Solar UK and Solar Fusion.

Two companies were suspended from the Scheme as a result of an investigation the REAL Assurance Scheme carried out into the allegations of non-compliance made by Which? in its May 2010 report: Everest Ltd (now Everest Energy Ltd) and Ideal Solar Energy Ltd. After they had provided certain undertakings and assurances concerning their future compliance with the Code, both companies had their suspensions lifted, subject to a one-year probationary period.

One company, Solar Power Scotland, was suspended from the Scheme in 2009 for non-compliance, had its suspension lifted in February 2010, subject to a one-year probationary period due to be reviewed in February 2011.

Two companies, Solar Europe and Unique Energies Ltd, had their membership of the Scheme terminated for persistently failing to respond to correspondence about complaints. One company, Britannic Power Ltd, had its membership of the Scheme terminated for persistently refusing an audit. (Solar Europe has since been reinstated having provided certain undertakings regarding their responses to communications from REAL.)

22 companies had their membership of the Scheme terminated for non-payment of their 2010 membership fees. (Some of these companies may no longer be trading.) They were:

• Andrew Kelland
• BHM Electrical Services
• D Turley Electrical Contractors Ltd
• Dendale Construction Ltd
• Ecoheat Wales Ltd
• Energance Ltd
• Green Energy Services
• Greenbrae Ltd
• Heatwave Engineering
• Impact Renewables
• JJ Electrical Services (Yorkshire) Ltd
• Lynx Building Service Management Ltd
• Neil North & Associates Ltd
• PV Solar Solutions (Bedford)
• Reading Renewables
• Switch On Solar
• T Stratton & Sons Ltd
• The Green Heat Team
• Thomas Stevens
• Tremorfa Managed Services Ltd
• Utopial Ltd
• Zyggi's Rock Drilling Ltd.

Changing the large biomass tariff will require the RHI regulations to be amended and submitted to Parliament for approval. We are unable to launch the scheme as a whole until this process has been completed. Therefore, unfortunately, we will not be able to open the scheme for applications on 30 September 2011 as we had originally planned.

Once we have received written confirmation from the Commission, we will make a further announcement about what this means for the large biomass tariff and the timing of the launch. We are committed to launching the scheme as soon as possible to minimise disruption to stakeholders.

Regards

DECC RHI Team

If you are a user of the P35-2 turbine and have further questions you are advised to contact your MCS certificated Installation Company. Installation companies are in turn advised to contact their MCS Certification Bodies for further guidance.

MCS is liaising with relevant parties to co-ordinate the response to the situation. Any further updates will be posted on the MCS News pages here

An online survey has been set up help get consumer feedback on microgen and the FIT process which canbe accessed here: http://www.rsconsulting.com/consumerfocus

The main aim of the survey is to inform the Government’s FIT review which is to be consulted on later this year, but also learn lessons for incoming schemes such as Renewable Heat Incentive and the Green Deal.

The survey takes 15 minutes to complete, and is open until 27 September.

Consumer Focus would greatly appreciate any feedback consumers can provide.